Investor Sentiment And Security Analysts Forecast Timing

With the development of China's capital market and the increasing demand for security research reports,security analysts impose a stronger impact on the capital market,while the competition among them is becoming increasingly fierce.Many researchers have discussed about their information processing capabilities and behavior patterns and have made a lot of achievements.However,there are still few studies on the timing pattern of the security analyst report releases.From the perspective of information contained in research reports,the market may generate more public information to weaken the information processing role of security analysts,but making an early forecast means giving up the chance of exploiting the new information that comes out later,thus reducing the forecast quality.Secondly,from the viewpoint of the attractiveness of the reports to investors,the effect of publishing a report when the company draws a lot of attention will also differ from when the company is not that popular.Obviously,the timing of report releases is a critical factor for security analysts to take into account during their work.This article mainly answers two important questions:do security analysts timing when they release their reports?if so,what factors affect their timing decisions?Using the depth-research reports sample in China from year 2009 to 2017,this article examines the relationship between investor sentiment and releases of rating reports and finds out that analysts more or less timing when they publish their work.The timing behavior is mainly influenced by analysts' ability,which is measured by informativeness of their reports.In addition,the market identifies the analysts' timing behavior,since less informative reports generate smaller abnormal returns that disappear faster than more informative ones.